Is This Really Happening?

Wachovia - gone !
    CountryWide - gone !
        Lehman Brothers - gone ! 
            Washington Mutual - gone !
                              Citicorp - maybe !

Who would have guessed these financial giants would no longer be with us. We are in scary times.

Over the next 12 to 24 months you will be hearing alot about loan modifications. We are in a recession that could easily grow into a depression. More and more homeowners are starting to experience financial hardship. Household income is being adversely affected and borrowers are beginning to default on their mortgage payments. For many homeowners, a loan modification is the best option.  

The intent of a loan modification is to keep the homeowner from defaulting on their mortgage payment. The lender will verify the Borrower's household income and then reduce the monthly mortgage payment until it satisfies the lender's debt to income guidelines. Sometimes the lender may lower the new interest rate to 3% or 4%. In addition to lowering the interest rate, the lender may also reduce the outstanding principal. Typically, the term of the loan is not modified (i.e. if you have a 30 Year term it is seldom increased to a 40 Year term).

Homeowners may be considered for a loan modification if  

1.  the homeowner has recently experienced an involuntary reduction in income
2.  the homeowner's living expenses have recently increased
3.  the lender determines that future loan deficiencies will be eliminated if the monthly payment is reduced

Loan modifications do not make sense in every situation. Before approving a loan modification, the lender carefully reviews each borrower on a case by case basis. If you are unemployed, then you have no income stream and the lender will not approve your loan modification request.

How To Get Started?

You can call your lender directly or you can enlist the services of Capstone Mortgage Company to be your advocate. Why enlist us? We understand the lender's underwriting guidelines. We understand how to strucutre your request. Would you attend an IRS audit without an accountant? Probably not. Should you try and modify your loan without our help? Probably not. I would never enter a financial jungle without a guide. Let Capstone Mortgage Company be your financial guide.

After contacting us (203-834-6293), we will prepare a loan modification game plan. If you approve our game plan, then we'll send you an engagement letter that describes our fees. Assuming you are comfortable with our fees (which includes a money back guarantee), we will immediately begin pursuing your loan modification. A loan modification approval typically takes 2 to 4 months.